Kick Bad Financial Habits to the Curb in 2020

No matter where 2019 may have taken you financially, a New Year is always a great reason to improve your financial health by adopting common sense financial habits and kicking bad ones to the curb. Start 2020 by putting a solid financial plan into action. Here are three resolutions to get you started:

Resolve to have a goal.

What’s your idea of financial freedom? Do you want to be completely rid of debt? Want to pay off your student loans by the time you’re 35? Want to be financially secure by the time you’re 45? Want to retire when you’re 60? Knowing where you want to be money-wise is the first step to getting there. Once you’ve made a list of your financial goals, you can make a detailed plan to reach them.

Resolve to get organized.

Don’t be in the dark about your finances. Stay on top of your spending, routinely check your credit card statements and bank statements, monitor your credit periodically and keep a running tally of your investments. Record your transactions, from that $4 coffee to the $30 tank of gas, and whether you paid by swiping a debit card or paid with cash. Adopting the habit of recording your purchases holds you accountable for them and can be a real eye-opener over time when you find out how much you’ve shelled out for something you think is insignificant.

Resolve to save money.

Differentiating between needs and wants and choosing to live within your means is essential to your long term financial health. Pricey gym memberships, dining out (or meal delivery), expensive cell phone plans, unneeded cable TV and credit card interest payments can all be eliminated from your spending plan. Put the money you save in these areas toward emergency accounts or paying off remaining debt. Are you getting a tax return? Save it. It’s not a windfall. Finding ways to lower your existing bills and save on other everyday costs is smart thinking that will lead you closer to your financial goals.

1034074